French governor had ideas

but Caledonians say non

From a Noumea correspondent

The New Caledonian Territorial Assembly has rejected French Governor Louis Verger’s appeal for the island to seek an additional loan from French banks to solve the local budgetary deficit.

Governor Verger’s administration had proposed that the territory should seek a loan of about SA9 million, like the 1972 private bank loan of S2O million, to balance out the territorial budget, which faces a 1973 deficit of more than SA6 million. Under the local system, the budget must balance each year.

Assembly members protested, how ever, that the proposed loan would only be a means of “delivering the territory, hand and feet tied, to France”. The governor’s proposal was rejected by 15 to 4, with Gaullist Georges Chatenay voting with the autonomists. Barrister Chatenay, who is also legal adviser to Canadian INCO, claimed it was useless in creasing the territory’s debts as long as the Paris government gave no clear indications over the future build-up of the island’s nickel industry.

During the critical debates over finances, former anti-autonomist Fredy Gosse accused the central government in Paris of seeking to reduce New Caledonia to the status of a totally-integrated department of France, by building up the island’s indebtedness to Paris to the point where the Territorial Assembly would be obliged to vote for direct personal taxation, as in France. He explained that such a dependence on Paris would create an ideal situation for the metropolitan French companies wanting to operate in the territory.

As an alternative means of balanc ing the budget, the Assembly called for an outright subsidy to be re quested from France.

Among the elements contributing to loss of territorial revenue is the continuing drop in the value of nickel exports. During the first half of this year, the level of nickel export tax dropped by almost SAI million or 17 per cent, compared with the first half of 1972. Shipments of nickel metal from the Noumea smelters were 27,265 tons, compared with 30.643 tons for the same half of last year. Shipments of iron ore to Japan

remained about stationary at 1.25 million tons, but lost value through recent price cuts and dollar fluctua tions.

Among imported items, motor vehicle registrations also continue to decline this year. The number of per sons leaving the territory has brought a crash in the second-hand car market.

Migration had resulted in a recent rise in population until this year when already the number of departures has outnumbered arrivals by more than 1.000 persons. Those giving up work in the territory have mainly been from Europe, Indonesia and Tahiti.

Another recession indicator has been the stabilising of the cost of living index, which has been spiralling up to 9 per cent annually in recent years. In the six months to August this year, however, COL rose only 2,2 per cent.

As far as nickel’s future prospects are concerned, recent echoes from Canadian INCO, French Aquitaine (SNPA) and the SOMMENI group indicate that the current stalemate continues while decisions are awaited from Paris. There was a tragic end to the visit to Noumea of two INCO executives. They were killed in the Pan-Am air crash off Papeete in late July. The two men were Paul Hubert, Director of INCO (Oceania), and public relations man Tom Liston.

Amid the gloom over the nickel outlook, the French Administration has begun reviving speculation over other possible industries for the ter ritory. These include the exploitation of trochus, tuna, shrimps and forestry, all hopefully counting on Japanese interest, which had not been parti cularly encouraged in the past.

In addition to economic problems.

Governor Verger, police and gendar mes are facing increasing social strife.

In late July, a naturalised French man of Vietnamese origin was arrested at the governor’s residence after breaking windows and setting fire to the main reception room. Several nights earlier, a door was dynamited at Ballande’s store in Noumea’s main street. In more open hostility, Cale donian students have clashed with the authorities during street demon strations over regulations forcing young men to interrupt their studies to undergo French military service.